THE ITO, KANNUR V. THE KOLACHERRY SERVICE CO-OP BANK LTD, KANNUR

MA 63/COCH/2021

AI Insights

The case involves a Miscellaneous Application (MA) by the Revenue under section 254(2) of the Income-tax Act, 1961, seeking to recall an ITAT order that granted deduction of interest income to Kolancherry Service Co-op. Bank Ltd. The Revenue argued that there was an apparent mistake in the ITAT's earlier decision, referencing a reversal of a Kerala High Court judgment that was initially cited in the ITAT's decision. However, during the proceedings, it was revealed that the Kerala High Court's later judgment, which the Revenue relied upon, had itself been reversed by the Supreme Court. Consequently, the Revenue's application was dismissed as the grounds for recalling the ITAT's order were found to be unfounded.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 31393 (ITAT-COCHIN)
• Duration Of Justice: 5 year(s) 21 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 21-10-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 30-09-2019
• Other Referred Cases: Chirakkal Service Co-operative Bank Ltd. v. CIT, Mavilayi Service Co-operative Bank Ltd. v. CIT
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GIRLY ALBERT
• Section: 254(2)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN Before Shri Waseem Ahmed, Accountant Member and Shri Soundararajan K., Judicial Member MA No. 63/Coch/2021 (Arising out of ITA No. 520 /Coch/2014) (Assessment Year: 2009-10) Income Tax Officer Ward -2, Kannur vs. Kolancherry Service Co-op. Bank Ltd. Cheleri P.O., Kannur 670604 [PAN: AABAK2927J] (Applicant) (Respondent) Appellant by: Smt. Girly Albert, Sr. D.R. Respondent by: ------ None ------- Date of Hearing: 27.09.2024 Date of Pronouncement: 21.10.2024 O R D E R Per Bench This Miscellaneous Application (MA) by the Revenue under section 254(2) of the Income-tax Act, 1961 (‘the Act’) is in respect of the order dated 26.09.2016 by the Tribunal disposing the assessee’s captioned appeal. 2. The Revenue by way of this MA is seeking to recall the order passed by the ITAT in the case of Kolancherry Service Co-op. Bank Ltd. in ITA No. 520/Coch/2014 dated 26.09.2016 on the reasoning that there is an apparent mistake in the order within the meaning of the provisions of section 254(2) of the Act. 3. In the present case, the assessee was granted deduction of the interest income by the ITAT in its order dated 26.09.2016 under the provisions of section 80P(2) of the Act after making reference to the judgement of the Hon'ble Kerala High Court in 2 MA No. 63/Coch/2021 Kolancherry Service Co-operative Bank Ltd. the case of Chirakkal Service Co-operative Bank Ltd. v. CIT[2016] reported in 384 ITR 490 (Ker). As pr the Revenue the said judgement of the Hon'ble Kerala High Court in the case of Chirakkal Service Co-op. Bank Ltd. was reversed by the later judgement of the Hon'ble Kerala High Court in the case Mavilayi Service Co- operative Bank Ltd. v. CIT [2019] reported in 414 ITR 67 (Ker) (FB)vide order dated 19th March 2019. Accordingly, the Revenue preferred the MA for recalling the order passed by the ITAT on the ground of apparent mistake in the order of the ITAT. 4. However, at the time of hearing a query was posed to the learned Sr. DR about the fact that the judgement of the Hon'ble Kerala High Court in the case of Mavilayi Service Co-op. Bank Ltd. (supra) was reversed by the Hon'ble Supreme Court in the case of Mavilayi Service Co-operative Bank Ltd. v. CIT reported in [2021] 431 ITR 1 (SC). The learned Sr. DR could not controvert. As such the learned Sr. DR conceded that the MA was preferred before the ITAT before the verdict of the Hon'ble Supreme Court in the case of Mavilayi Service Co-op. Bank Ltd. (supra) and therefore the Revenue has no case in these MAs. Accordingly, in view of the above facts, we hold that there is no apparent mistake in the order of the ITAT as alleged by the Revenue. Hence, the miscellaneous application filed by the Revenue is hereby dismissed. 5. In the result, this miscellaneous application filed by the Revenue is hereby dismissed. Order pronounced on 21st October, 2024 under Rule 34 of The Income Tax (Appellate Tribunal) Rules, 1963. Sd/- Sd/- (Soundararajan K.) JudicialMember (Waseem Ahmed) AccountantMember Cochin, Dated: 21st October, 2024 n.p. 3 MA No. 63/Coch/2021 Kolancherry Service Co-operative Bank Ltd. Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File By Order Assistant Registrar ITAT, Cochin "